Billionaire Warren Buffett’s Prediction of the Economy

The billionaire investor Warren Buffett was confident on Saturday in a recovery of the US economy from the coronavirus crisis, stressing that “basically nothing can stop the United States.”

“The American miracle, American magic, has always prevailed and will do so again,” Buffett said when opening the annual meeting of his firm, Berkshire Hathaway, which this time was held by videoconference, EFE reported.

In his speech, Buffett stressed that the coronavirus poses a difficult situation to assess, with an economic impact that it can still fluctuate a lot given the parate of the activity, something that has no parallels in history.

Berkshire Hathaway announced losses of almost $ 50 billion in the first quarter of the year, with its investments hit hard by the collapse that the pandemic caused in the markets.

The figures contrast with the net profit of US $ 21,661 million that the company had registered in the same period of the previous year.

The 89-year-old billionaire maintains for now a conservative stance in the current situation, maintaining record levels of cash in the box instead of opting for large operations.

In this regard, he explained that, although one may want to bet on the US economy, it is necessary to do it carefully, because – he said – “nobody knows what will happen tomorrow in the market.”

In late February, Buffett had claimed that the coronavirus outbreak it had not clouded his view that the stock market is a good destination for long-term investments.

Speaking to CNBC television, Buffett said he was not an expert on the coronavirus, but noted that investors with a 10-20 year time horizon and focused on companies’ ability to generate profits will see that they have “done a good investment “when investing in stocks.

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